Litigation

In the dark days of 2009, we had frequent occasion to discuss the difference between “layoffs” and “performance-based dismissals.” Layoffs are generally understood as economically motivated, large-scale reductions in headcount, while performance-based dismissals involve specific individuals being asked to leave for cause. (Some see this as the difference being getting laid-off versus getting fired, although I’ve sometimes heard layoffs referred to as firings.)

The distinction can be a fine one. Unless cuts are made based on factors like seniority or practice area, layoffs often target weaker performers, so they can look a lot like performance-based terminations. There’s no bright-line cutoff, in numerical terms, for what constitutes a round of layoffs. And you can’t let firm characterization control, since many firms find it in their reputational interest to deny layoffs (unless the cuts are so large as to be undeniable; see, e.g., last week’s Weil Gotshal layoffs).

Today we bring you a story that captures this ambiguity. Several lawyers and staffers, totaling a number believed to be in the double digits, have been asked to leave a firm — but the firm denies that it’s conducting “layoffs.” We’ll present the facts and let you be the judge….

double red triangle arrows Continue reading “Nationwide Layoff Watch: Layoffs? What Layoffs?”

Tomorrow, I’ll be going into a meeting with the folks from finance, and they’ll ask me: “How much are we going to pay in the Smith case, and in what quarter?”

[Note to accounting purists: We'll assume that we could reasonably win Smith, so liability is not probable.]

To be sure that I have the most informed opinion possible, I call outside counsel and cleverly ask: “How much are we going to pay in the Smith case, and in what quarter?”

And outside counsel starts the usual spiel:

“Life is full of surprises. The Lord works in mysterious ways. Litigation is like a black box; you never know what’s inside until you’ve opened it, and by then it’s unstoppable.”

“Yeah, yeah, yeah,” I say. “But how much are we going to pay in the Smith case, and in what quarter?”

“Well,” says outside counsel. . . .

double red triangle arrows Continue reading “What Outside Counsel Don’t Understand”

One of the more amusing law firm nicknames belongs to Weil Gotshal & Manges. As we noted a few years ago, some refer to the firm as “We’ll Getcha & Mangle Ya.”

Alas, the nickname is less funny in the wake of yesterday’s big layoff news. The firm announced it will be cutting 60 associates and 110 staffers from the payroll. Despite the generous six-month severance for associates, some probably feel like their legal careers have been mangled. The firm also plans to reduce the compensation of about 10 percent of its partners (roughly 30 out of 300, some income and some equity partners).

Let’s take a closer look at the layoffs and try to make sense of them….

double red triangle arrows Continue reading “The Weil Winnowing: A Closer Look At The Layoffs”

Since the Supreme Court’s ruling in Fisher, the major affirmative action case, turned out to be something of a dud, the big legal story of the day is the news out of Weil Gotshal. The firm is conducting large layoffs of both attorneys and staff, as well as reducing partner pay.

Thus far, many of our recent layoff stories have involved staff layoffs, especially secretarial layoffs; relatively small numbers of affected individuals; and firms not in the tippy-top tier of Biglaw. So that’s what makes the Weil news so notable — and so frightening.

Weil is an elite firm, in both profits and prestige. The cuts it just announced affect lawyers, not just staff, and reach into the triple digits….

double red triangle arrows Continue reading “Nationwide Layoff Watch: Major Cuts Come To Weil Gotshal”

Let’s assume for a moment that arithmetic is true.

This means that the average lawyer is average.

And average is actually pretty bad. (As one of my co-clerks said during the first week of a clerkship, reading a Ninth Circuit brief several decades ago: “This is great!”

“What? Is the brief good?”

“No! The brief is terrible. We are not gonna starve!”)

The average lawsuit thus pits Tweedledee against Tweedledum, and, sadly, they can’t both lose. After the verdict comes down, Tweedlewhoever boasts on his website of another great victory and yet more proof of his talent and expertise.

Twenty years later, what does that look like?

double red triangle arrows Continue reading “On Tweedledee And Tweedledum, Esq.”

I imagine there are a few dozen articles on the internet about “dealing with difficult opposing counsel.” There’s probably some good advice in some of them, but I thought I’d offer my own, as, well, I deal with difficult lawyers and have found a way to cast them into the abyss of irrelevancy, causing them to either question their own disgraceful way of practicing law, or wonder how to proceed next.

First, where I learned how to deal with these self-important blowhards. When I was a young lawyer, I had the opportunity to work on a case where a well-known securities lawyer was involved — he was on our side. I went to see him at his New York office, and after an all-day session with the client, he invited me to dinner. (See what I did there?) He told me the story of an opposing counsel in another case that sent him a “lawyer letter” laying out his position on the case, and making several threats and demands.

My friend responded with a letter of his own. It was two words: “I disagree.”

That dinner taught me two things. One, there is no requirement that your response be as wordy as the initial screed of threats and demands. Two, there is no need to respond in detail to bluster, regardless of who is blustering.

I’ve used this tactic many times. I read every email with this question in mind: “Does this require a response?” I also maintain a philosophy that I practice law my way, not opposing counsel’s way. Just because you yell, doesn’t mean I need to yell. Just because you’re a piece of crap, doesn’t mean I need to join you in the gutter….

double red triangle arrows Continue reading “The Practice: Dealing with Threatening, Demanding Opposing Counsel”

Juan Monteverde

When Alexandra Marchuk filed her epic lawsuit against her former firm, Faruqi & Faruqi LLP, and one of its partners, Juan E. Monteverde, she aired a lot of dirty laundry. Here’s one allegation that got a lot of attention in the corporate-law community: “[In advance of a Delaware Chancery Court hearing,] Mr. Monteverde explained that Judge [Travis] Laster was partial to good-looking female lawyers, but F&F’s female local counsel was ugly; so Mr. Monteverde wanted Ms. Marchuk to appear with him because her good looks would influence the judge in favor of F&F. Mr. Monteverde told Ms. Marchuk to wear her hair down, wear a low-cut shirt, and to try to look as alluring as possible during the hearing.”

Some wondered: did members of the Delaware Chancery Court hear about this rather embarrassing allegation? The answer would appear to be yes, based on a letter that a Faruqi lawyer recently received after moving for Juan Monteverde to be admitted pro hac vice….

Please note the UPDATE added after the jump.

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Tom Wallerstein

I’m pleased to announce that the reports of my death have been greatly exaggerated. To the contrary, I survived my surprise three-week trial. It wasn’t a total surprise, of course. I had been expecting a trial, just not one that lasted more than a week.

Not that I’m complaining. Frankly, trying cases is a whole lot of fun. I’ve written before about my passion for trials and the competitive aspect of litigation generally.

That internal motivation is crucial for me. Trials usually require demanding hours, and that is the least of it. Beyond the mere number of hours spent working, I often find trying a case to be exhausting. Not just physically, but mentally and emotionally as well. Whenever you’re not on center stage, say, conducting a witness examination, you are paying rapt attention, thinking and calculating and strategizing. Sustaining that over time, day after day, can be difficult. You have to give your all, and then some. And when even more is asked of you, fate will decide the rest…

double red triangle arrows Continue reading “From Biglaw to Boutique: Trying Times Two”

Are layoffs becoming daily news in Biglaw once again? Today marks the fourth consecutive day that we have news of reductions to report.

The latest layoffs involve both lawyers and staff, based out of two large legal markets, New York and Washington, D.C….

double red triangle arrows Continue reading “Nationwide Layoff Watch: Negative News From New York and D.C.”

Paging the next Aquagirl! Where are you? (Click for the image for the post.)

* Obama might have found out about the IRS scandal “when it came out in the news,” but the Office of White House Counsel knew what was going on weeks ago. Hooray, a new reason for people to lose their sh*t. [Wall Street Journal (sub. req.)]

* Life, liberty, and the pursuit of happiness through ridiculously expensive litigation: making up almost two percent of our GDP, our legal system is the most costly on earth, which isn’t exactly something we should be bragging about. [Corporate Counsel]

* “It’s no surprise these lawyers would want to get off this sinking ship.” It looks like things are going just swimmingly for Steven Donziger now that John Keker’s out as his defense attorney in the Chevron fraud case. [Thomson Reuters News & Insight]

* “Fantasy sports is usually the first and last thing I’ll do each day.” Here’s some proof that there’s such a thing as work/life balance in Biglaw… which is only applicable if you’re a partner. [Am Law Daily]

* Law school enrollment is down, and so is tuition revenue, so the legal academy is now selling new degrees. It’s only a matter of time before they market employment timeshares. [National Law Journal]

* On the bright side, if you’re still looking for a job, our own David Lat has some advice on how to get one (and how NOT to get one). We miss summer associates’ misbehavior. [U.S. News & World Report]

* Congrats are in order for this weekend’s graduates, including the first graduates of LMU’s embattled law school — they won’t let a lack of ABA accreditation rain on their parade. [Knoxville News Sentinel]

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